How do you interpret industrial product division — inventory write down?

Higher write-downs suggest poor inventory management, product obsolescence, or declining market demand for the division's products.

How does industrial product division — inventory write down compare across companies?

Common across industrial manufacturing peers managing complex supply chains.

Flowserve FLS Industrial Product Division — Inventory Write Down

Discontinued — last reported Q2 '18

Similar metrics at other companies

RPMIndustrial — Inventory Write Down

$1.8M+50.0%

MOG.BIndustrial — Inventory write-down

$0-100%

RPMSpecialty Products Group — Inventory Write Down

$1.9M—

RPMConstruction Products Group — Inventory Write Down

$25K-93.8%

RPMConstruction Products — Inventory Write Down

$300K+50.0%

RPMConsumer — Inventory Write Down

$500K-97.7%

Other financials

Income statement

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Revenue$1.1B-6.7%

Gross profit$379.8M+2.8%

Operating income$119.4M-9.4%

Net income$81.7M+10.5%

EPS (diluted)$0.64+14.3%

Balance sheet

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Cash & equivalents$792.4M+46.5%

Total debt$1.9B+12.7%

Total equity$2.2B+6.4%

Total assets$5.7B+4.6%

Cash flow

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Operating cash flow-$43.1M+13.7%

CapEx$16.9M+44.0%

Free cash flow-$60.0M+2.7%

Valuation

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Market cap$10.44B+45.4%

Enterprise value$11.59B+37.9%

P/E27.3×+1.8×

P/S2.2×+0.7×

Profitability

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Gross margin34.2%+2.5pp

Operating margin8.3%-2.1pp

Net margin8.2%+2.1pp

FCF margin9.9%+4.3pp

Returns & leverage

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Return on equity17.8%+3.8pp

Debt / equity0.9×0.0×

Current ratio2.2×+0.1×

Where this comes from

Reported directly by Flowserve in its filing.

Tagged under the XBRL concept us-gaap:InventoryWriteDown.

The official record: Flowserve’s 10-K, filed February 20, 2019, on SEC EDGAR. View the filing →

Questions, answered.

What does industrial product division — inventory write down mean?: The cost of reducing the recorded value of inventory that is no longer worth its original cost.
How do you interpret industrial product division — inventory write down?: Higher write-downs suggest poor inventory management, product obsolescence, or declining market demand for the division's products.
How does industrial product division — inventory write down compare across companies?: Common across industrial manufacturing peers managing complex supply chains.